These are the big winners as the US dollar weakens

The US dollar, the bedrock of global finance, has weakened by nearly 10% from its mid-January peak to a three-year low against a basket of major currencies.

A key catalyst has been President Donald Trump‘s disruptive tariffs, which have reignited inflation and recession fears and rocked investors’ confidence in the greenback.

The buck’s depreciation has eroded consumers’ purchasing power and raised import costs for businesses, while also making US exports more competitive.

The slump also has global implications, as the dollar is the world’s reserve currency used for trading everything from goods and services to commodities and derivatives.

Here’s a look at the likely winners from the decline.

Foreign currencies

The dollar’s loss has been other currencies’ gain this year, as investors seek havens and substitutes.

The Swiss franc, supported by Switzerland’s neutrality and robust financial system, has gained more than 9% against the dollar and continues to hover around its strongest level in more than a decade.

The yen, underpinned by Japan’s low inflation and strong bond demand, has surged more than 9% versus the greenback.

The euro has surged to a three-year high against the dollar, signaling confidence in the European Central Bank. Emerging market currencies such as the Singapore dollar and South Korean won have also gained ground.

While cryptocurrencies are heralded as hedges against inflation and currency depreciation, bitcoin is down more than 9% at about $84,400.

Charlie Bilello, the chief market strategist at wealth manager Creative Planning, highlighted the broad exodus from the dollar this year in a X post on Wednesday:

Other countries

A weaker dollar typically benefits export-driven economies such as China, Germany, Japan, and Malaysia. It makes the goods they produce cheaper in dollar terms, boosting domestic companies’ revenues and profits and lifting their stock prices. That effect is at least partly offset by Trump imposing tariffs on most goods entering the US.

Commodity-rich countries such as Saudi Arabia and Australia tend to gain too, as their respective oil and gold exports become more competitively priced. Other countries’ stock markets stand to gain as well as more investors pile in, seeking better returns on their money.

A declining dollar could accelerate efforts by countries including Brazil, India, Russia, China, and South Africa to reduce dollar dominance in global trade — a trend known as de-dollarization.

Commodities

Oil, gold, and agricultural goods tend to benefit from a falling dollar as it makes them relatively cheaper.

Gold, a popular haven asset, has surged above $3,300 an ounce this year as investors flee from riskier assets such as US stocks and dollars.

However, crude prices have dropped since January due to concerns that an expanding trade war will trigger a global economic slowdown and reduce oil demand.

Soybean futures are up about 4% this year at $10.40 a bushel, as tighter supply and Chinese tariffs on US soybeans put upward pressure on prices.